Post Utme Esut 2019 Commerce Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Esut Commerce examination.

Post Utme Esut 2019 Commerce Objective / Multiple Choice
Question 1 POST_UTME_ESUT • 2019 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the consequence of this decrease on the firm's production level?

Answer Options

A. The firm will increase its production level to maximize profits.
Correct Answer B. The firm will decrease its production level to minimize costs.
C. The firm will maintain its current production level.
D. The firm will increase its production level to meet increasing demand.
Correct Answer
B
Correct Option:
The firm will decrease its production level to minimize costs.

About This Question

This is Post Utme Esut 2019 Commerce Question 1. It is one of the objective questions from the 2019 Post Utme Esut Commerce examination.

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